Correlation Between Kweichow Moutai and NBTM New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and NBTM New Materials, you can compare the effects of market volatilities on Kweichow Moutai and NBTM New and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kweichow Moutai with a short position of NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and NBTM New.
Diversification Opportunities for Kweichow Moutai and NBTM New
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and NBTM is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials and Kweichow Moutai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kweichow Moutai Co are associated (or correlated) with NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and NBTM New go up and down completely randomly.
Pair Corralation between Kweichow Moutai and NBTM New
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the NBTM New. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.81 times less risky than NBTM New. The stock trades about -0.02 of its potential returns per unit of risk. The NBTM New Materials is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,524 in NBTM New Materials on November 7, 2024 and sell it today you would earn a total of 197.00 from holding NBTM New Materials or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. NBTM New Materials
Performance |
| Timeline |
| Kweichow Moutai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NBTM New Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kweichow Moutai and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and NBTM New
The main advantage of trading using opposite Kweichow Moutai and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, NBTM New can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NBTM New will offset losses from the drop in NBTM New's long position.The idea behind Kweichow Moutai Co and NBTM New Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |